Shaktikanta Das IAS appointed as New RBI Governor

Promises to uphold the autonomy, credibility & integrity of RBI andConflicts with Government would be resolved by discussion

The retired Tamil Nadu cadre 1980 batch Indian Administrative Service Officer Shaktikanta Das has been appointed as 25th Governor of RBI after the former Urjit Patel resigned from the office for personal reasons.

The government began the selection process soon after Patel’s resignation. It was expedited as the government didn’t want the post to remain vacant at a crucial juncture. The appointment will be for three years.

The new RBI governor mentioned in a press meet that “he would do everything possible to uphold the autonomy, credibility and integrity of RBI as a “great institution” and take all stakeholders, including the government, along through a consultative process.

“Every institution must maintain its professional integrity and autonomy, at the same time every institution must adhere to principles of accountability,” he said about the friction between RBI and the government. He also acknowledged the contribution of his predecessor, Urjit Patel.

Experience of New RBI Governor in Economic Affairs of the Country

He has served in various capacities for Indian and Tamil Nadu governments in Administrative and Economic & Financial Administrative capacities.
He was earlier a member of the Fifteenth Finance Commission of India and India’s Sherpa to the G20.

He has worked as Economic Affairs Secretary of India, Revenue Secretary of India, Fertilizers Secretary of India. During his tenure as Union Economic Affairs Secretary, Das was widely regarded as one of the most powerful civil servants in India.

He has also worked as a joint secretary in the Department of Expenditure of the Ministry of Finance in the Indian government.

Stance on Liquidity issues with Banks in India

The new RBI Governor has showed move to talk openly with the stake holders and Banks of India over the issue of liquidity that has been matter of hot plate for last 6 months.

He mentioned that “It adds value and depth to our understanding of issues. So, therefore, I propose to undertake consultations wherever necessary on a need based manner.”

The governor is also open to discussing the issue of liquidity which the previous governor said was comfortable after the previous monetary policy review. His proposed consultation with stakeholders, which the central bank always does, will help in pragmatic policy measures amidst exchange of inputs.